Selling FSBO in 2022 can be incredibly problematic if you don’t know how to deal with the crazy market we are experiencing right now. It’s very tempting to think that it is a simple matter to do it yourself, but trusting your most valuable asset to inexperience and lack of familiarity of the current market could cost you tens of thousands, or more,  in headaches and mistakes. Let’s take a look at some of the scenarios that might happen. Would you know what to do? These are just a few of the things you will need to know how to handle in a real estate transaction.

Selling FSBO in 2022 Offers

You manage to get multiple offers, perhaps 10 or more, and now must decide which one is the best for you. Could you confidently figure out which offer was the very best one? Each offer has a multitude of contingencies and terms. Which nets you the most money? Which contract is most likely to actually close? When is a cash sale not really cash?

  • Escalation Clause – Five of the offers contain a clause that states the Buyer will pay a certain amount over the best offer, up to a certain capped amount. Are there any additional stipulations tied to that clause?
  • You have 4 Cash offers. But are they really cash? There is a lot of bait and switch with supposedly “cash offers” right now. Removing a financing contingency does not mean it will be a cash sale. It only means that the sale is not contingent on the Buyer qualifying for a loan. Where is the money coming from? Will a check be written out of the Buyer’s checking account or will the funds be coming from a HELOC (home equity line of credit)? Are the funds verified by the bank in writing? Will money come from a trust account? From stocks or an IRA? How liquid is the money? Will there be any Gifted Money involved? Is the cash sale contingent on the closed sale of a home that has not yet taken place?

Selling FSBO Earnest Money Issues

  • Who is going to hold the earnest money and who decides this?
  • If it is an attorney, are they bound by real estate license law in your state?
  • Is there really such a thing as “non-refundable” earnest money?
  • Is earnest money a deposit that applies to the loan?
  • The Buyer walks away, so do they get their earnest money back?

Selling FSBO Loan Issues

  • The Buyer wants to switch lenders, or maybe even loan types, in the middle of the transaction. How will this affect the closing?
  • Uh oh, the Buyer can’t close on time. Now what do you do, especially since you needed this home to close in order to move to your next home?
  • The Buyer used a Lender that has poor communication, leaving the Seller in the dark about the loan status. Now what?

Selling FSBO Appraisal Issues

If the appraisal comes in low, a very common issue right now, how will you proceed? What are your options?

  • The appraisal requires that your home must be repainted in order for the home to close. How do you resolve this?
  • The home appraises far too low to cover the appraisal gap offered in the contract. What do you do now? Can you renegotiate? Can the Buyer walk away?

Closing Issues

  • The Buyer expects all lighting, drapes, and appliances to remain with the home, but you replaced your grandmother’s crystal chandelier with a different fixture and took down the living room drapes that match your furniture. At final walkthrough, the Buyer is not happy. Now the Buyer does not want to close. How do you handle this?
  • You expected the Buyer to pay all of your closing costs, but at signing, you see this is not the case. Now what?


Smart negotiations when reading offers can resolve some of the issues of a real estate transaction upfront, but there are so many other things that can happen along the way to derail a closing. Without the seasoned experience of a real estate professional, there are many things that can go wrong for a person selling FSBO. Knowing what you might face, could you confidently handle it all, especially in this 2022 market?